Because taxes burden Texans, legislators should not raise taxes unless there is a broad consensus. The challenge for conservatives is to develop a tax system that collects sufficient revenue to pay for the preservation of liberty while doing the least economic harm to Texans.
The state’s current tax system is projected to collect $107.1 billion in 2018-19, 97% more than the $57.8 billion it collected in 2004-05. By comparison, the compounded growth rate of population and inflation over this period is expected to be only 63%. This suggests that the tax system collects more tax revenue than taxpayers should afford, reducing economic growth and job creation.
The state tax that generates the most revenue is the sales tax; it is expected to account for 58% of total tax collections in 2018-19. Compared with other major taxes, research finds the sales tax is the least intrusive, allows more choices, and is simple to understand and administer.